Archive for the tag 'petr murmylyuk hacking'

Source: wmfawmfa/Flickr

Area resident Petr Murmylyuk was sentenced to 30 months in prison for conspiring to hack into retail brokerage accounts and execute sham trades, the U.S. Attorney announced on Friday.

Murmylyuk, who also went by the name Dmitry Tokar, pleaded guilty in July 2013 to charges of conspiracy to commit securities fraud. He had previously pleaded guilty to charges of identity theft and tax fraud for a separate but related scheme.

According to prosecutors, Murmylyuk admitted to his role in conspiring to steal from online trading accounts at Scottrade, E*Trade, Fidelity and others wit the aid of foreign nations visiting, studying and living in the United States.

Here’s how the scheme went down, according to prosecutors:

Members of the conspiracy first gained unauthorized access to the online accounts of brokerage firm customers. The conspirators then used stolen identities to open additional accounts – referred to in the Information as “Profit Accounts” – at other brokerage houses. They then caused the victims’ accounts to make unprofitable and illogical securities trades with the Profit Accounts, leading to losses in the victims’ accounts and gains in the Profit Accounts. One version of the fraud involved causing the victims’ accounts to sell options contracts to the Profit Accounts, then to purchase the same contracts back minutes later for many times the price.

The members of the conspiracy recruited foreign nationals visiting, studying, and living in the United States to open bank accounts into which illegal proceeds could be deposited. The conspirators then caused the proceeds of the sham trades to be transferred from the Profit Accounts into those accounts, where the stolen money could be withdrawn.

In addition to the prison term, Murmylyuk is ordered to serve three years of supervised release, and pay restitution of $505,357.79.

Source: wmfawmfa/Flickr

Petr Murmylyuk,  a.k.a. Dmitry Tokar, who we’ve written about before for engaging in a conspiracy to defraud customers of online stock trading websites as well as setting up a fraudulent employment website to scam the IRS of phony tax returns, has pleaded guilty to a new round of charges.

Murmylyuk stole a cool million by hacking retail brokerage accounts, plagiarizing customers’ identities, and executing sham trades, prosecutors say. A press release put out by the US District Attorney’s office says that Murmylyuk has now pleaded guilty to charges of conspiracy to commit securities fraud. He previously pleaded guilty to charges of identity theft and tax fraud.

Previously we had written about Murmylyuk’s initial indictment on the charges listed above, as well as the phony tax return scheme. The U.S. District Attorney’s office described what Murmylyuk admitted to as well as the extent of his crimes:

Murmylyuk admitted that he participated in a conspiracy to steal from online trading accounts at Scottrade, E*Trade, Fidelity, Schwab and other brokerage firms. Members of the conspiracy first gained unauthorized access to the online accounts of brokerage firm customers. The conspirators then used stolen identities to open additional accounts – referred to in the Information as “Profit Accounts” – at other brokerage houses. They then caused the victims’ accounts to make unprofitable and illogical securities trades with the Profit Accounts, leading to losses in the victims’ accounts and gains in the Profit Accounts. One version of the fraud involved causing the victims’ accounts to sell options contracts to the Profit Accounts, then to purchase the same contracts back minutes later for many times the price.

The members of the conspiracy recruited foreign nationals visiting, studying, and living in the United States to open bank accounts into which illegal proceeds could be deposited. The conspirators then caused the proceeds of the sham trades to be transferred from the Profit Accounts into those accounts, where the stolen money could be withdrawn. The scheme caused combined losses to Scottrade, E*Trade, Fidelity, Schwab and other affected brokerage firms of approximately $1 million.

Sentencing is scheduled for November 12, where Murmylyuk could face the maximum penalty of five years in prison and a $250,000 fine.

Petr Murmylyuk, a.k.a. Dmitry Tokar, is having a bad day. Murmylyuk has been slapped with a slew of federal charges in two different states.

First came a federal indictment in Newark, New Jersey, in which the 31-year-old is identified as the alleged leader of a $1 million securities fraud scheme that involved hacking into the online trading account of unsuspecting individuals, and forcing them to engage in losing trades that benefited a network of phony accounts he and his cohorts set up.

Then, in Manhattan, the expansion of an earlier federal indictment in which Murmylyuk is charged with stealing the identities of more than 300 unemployed people, then collecting phony tax returns in their names.

Both cases involve preying on internet users and employing a network of Eastern European student visa-holders he helped recruit.

Read details about the schemes, and the charges Petr Murmylyuk, a.k.a. Dmitry Tokar faces.